JS – Commodites – 22 – FEb – 2016

Gold adjusted its previous gain to close at $1,228, down $2.8. The current pattern suggests that gold is expected to consolidate at current levels. Meanwhile, a fall below Friday’s low will target the 14‐DMA at $1,195; where a fall below will resume the downtrend. However, a rise above $1,235 will continue the uptrend with $1,263 in sight. The Stochastic Oscillator and the MACD are rising, supporting a positive view. We recommend investors to stay ‘long’ above the 14‐DMA.

Silver witnessed a range bound activity to close at $15.34, down $0.03. Currently, silver is expected to test support at the 14‐DMA where a fall below will initiate the downtrend. The initial downside target will be at $15.02, followed by $14.65. However, any upside will revisit Friday’s high of $15.46. The indicators are mixed, signaling no clear trading view. We recommend investors to stay ‘long’ above the 14‐DMA. Crude oil extended its decline to close at $31.93, down $0.77. Currently, oil is expected to consolidate between the 14‐DMA and the 50‐DMA which stands at $30.76 and $33.11, respectively. A break above or below is needed for a directional move. Meanwhile, the RSI has moved down and the MACD is rising, supporting a neutral view. Investors are recommended to stay ‘long’ above the 14‐DMA. Once again, the USD index failed to clear the 200‐DMA resistance and slid down to close at 96.60, down 0.26 points. A long upper shadow has occurred which indicates a negative trend ahead. Moreover, the 200‐DMA will continue to provide resistance at 97.02. Meanwhile, a fall below 96.57 will open the way towards 96.40, followed by 95.97. The RSI has shown weakness and the Stochastic Oscillator has generated a sell signal, supporting a negative view. We recommend investors to ‘Sell on Strength’, with risk defined above the 200‐DMA.